 Distributional Growth Accounting: Education and the Reduction of Global Poverty, 1980–2019*Amory Gethin The Quarterly Journal of Economics, 2025, vol. 140, issue 4, 2571-2618 Abstract: This article quantifies the role played by education in the reduction of global poverty. I propose tools for identifying the contribution of schooling to economic growth by income group, integrating imperfect substitution between skill groups into a macroeconomic growth decomposition. I bring this “distributional growth accounting” framework to the data by exploiting a new microdatabase representative of nearly all of the world’s population, new estimates of the private returns to schooling, and historical income distribution statistics. Education can account for about 45% of global economic growth and 60% of pretax income growth among the world’s poorest 20% from 1980 to 2019. A significant fraction of these gains was made possible by skill-biased technical change amplifying the returns to education. Because they ignore the distributional effects of schooling, standard growth accounting methods substantially underestimate economic benefits of education for the global poor. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:140:y:2025:i:4:p:2571-2618. Ordering information: This journal article can be ordered from Access Statistics for this article The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.